Ingram Micro Posts Record Quarterly Profits And Revenues

Ingram Micro has announced its fourth-quarter results this week, posting record quarterly worldwide sales of $11.38 billion, compared to $9.95 billion during the same period last year. The company's recently completed acquisitions of BrightPoint and Aptec Holdings Ltd. contributed quarterly revenues of approximately $1 billion and $75 million, respectively.

Worldwide gross profit measured $661.2 million, or 5.81 percent of total sales, compared with $554.3 million, or 5.57 percent of total sales, in the fourth quarter of 2011. This uptick reportedly represents another company record.

Operating income was posted at $167.9 million, or 1.48 percent of total sales. Meanwhile, net income was $101.4 million, or 66 cents per diluted share.

"Our fourth-quarter financial performance confirmed our improved execution, as the entire company responded well to the challenge to drive a sense of urgency, better execution and increased profitability across the organization," said CEO Alain Monie in a prepared statement. "While we are entering 2013 well-positioned to drive better returns on capital and reasonable revenue growth across the business, there are several key objectives on which we must deliver. We must return Australia to a profitable, growing business. We also must continue to execute on the integration of BrightPoint and realization of cost and revenue synergies. We will maintain our historic focus on operational excellence, while combining improvements in returns on invested capital with revenue growth. Additionally, we will continue to examine opportunities to free up and reallocate capital from underperforming businesses into areas of better returns."

Among the highlights, North America revenues were up 6 percent, representing the highest sales for Ingram Micro in more than a decade. This performance was led by double-digit growth in the company's SMB sales combined with strong growth in specialty divisions. Meanwhile, Latin America delivered all-time record fourth-quarter revenues on growth of 5 percent in U.S. dollars and led the company in operating income as a percentage of sales. Asia Pacific also posted a fourth-quarter sales record with revenue growth of 11 percent over last year.

Among the less encouraging data points, European quarterly revenues were down 4 percent in U.S. dollars as compared to last year. The Santa Ana, Calif.-based distributor is also predicting a seasonal decline in consolidated revenues for its first quarter of 2013, due partly from a projected downturn in the company's logistics services. But the company is also anticipating consolidated revenue growth in the low teens for the remainder of the year.

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